Hopes for law on pension age
by Bernard Harbor
 
The new legislation went to committee stage in the second week of December.
The new legislation went to committee stage in the second week of December.

There is renewed hope that the Oireachtas will pass legislation allowing public servants to retire after age 65 before the Christmas recess.

 

This avoids more staff suffering a huge gap in retirement income when forced to leave work a year before they reach the new state pension age of 66. It follows earlier fears that the legislation would be delayed until next year.

 

Earlier this year the administration bowed to union pressure and agreed to legislate to give civil and public servants the option to retire at any age between 65 and 70 if they chose.

 

This was necessary because many civil and public servants depend on the state pension for a substantial part of their retirement income, but they are currently required to retire a year before that’s available.

 

Interim measures, which allow them to be re-hired until age 66, are unpopular as they treat staff as is they were newly employed. This also means a significant drop in income, even though they are still working.

 

The new legislation went to committee stage in the second week of December.

 

A Fórsa spokesperson said: “This issue has had a massive impact on the individuals who are caught offside by the current legal retirement to retire at age 65 or, in some cases, before.

 

“Each day that passes sees more workers forced to retire and immediately sign on for unemployment benefit because a large proportion of their pension is made up of the State old age pension.

 

“Most TDs and senators understand the urgency of the situation, but Fórsa would urge them, once again, to get this legislation on the statute book quickly.”

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